Mack Powers

Have you ever sold a product that was not the lowest cost product in the market? If you said yes… congratulations. I congratulate you because you were obviously able to sell a product or service based upon the value of the product or service and not the cost.

Understanding the difference between the two is very important for every sales person to understand. Many inexperienced sale people will fall into the trap of fearing a sales situation in which they are competing with a product or service that is being offered at a price that is less than theirs. The big question becomes “how can I be competitive if my price is higher”? The answer should be obvious but if it is not, then you might be in danger if in the moment of discovering that your price is higher than your competitors you might begin to get a bit “paranoid” about losing the sale and you lose your ability to effectively communication the “value” of what you offer. Before you lose your cool and quite possibly the sale itself, think about the following.

Consider several recent purchases that you have made for yourself or for your company. Then, ask yourself the following question. Did I purchase the absolute lowest price product in the market? For example, did you purchase:

• The lowest price car?
• The lowest price shirt?
• The lowest price shampoo?
• The lowest price shoes?
• The lowest price groceries?
• The lowest price haircut?

The point here is that we don’t generally purchase the lowest price of anything. We purchase something because we see the “value” in what it is that we are purchasing. Therefore, the primary role for any person involved in business development or sales is to clearly explain the value so that our customers will understand what it is that they are purchasing and the reason that they will want to purchase from us even in the product or service turns out to NOT be the lowest price available. I find that it is helpful to quantify in as many ways as possible what the value is that we provide.

A very simple example of one value that differentiates products is the availability to deliver a product or service in an appropriate timeframe. I will never forget a conversation that I had with a client one time. He asked for a quote for an item that I had in stock. He said that he needed the product at that time. When I gave him the price, he mentioned that he could get the same product elsewhere for a price that was less than my offer. I told him that he should make that purchase with my competitor. He said, “well I would purchase it from your competitor but he doesn’t have it in stock”. I ended up making the sale at the price that I had quoted and not the price of some phantom product that was not available. What was the value in that sale? The value was that I had the product immediately available for him and that is when he needed it. Value trumped price!

Consider other values that you and your company can bring to the table and highlight those to your customers the next time that you talk with them. Don’t forget… it’s not the lowest price product that wins the order… it’s the one with the most value.

In his book Rainmaking - The Professionals Guide to Attracting New Clients, Ford Harding, clarifies that business relationships require regular and consistent contact.   With everyone being so busy, you can’t just stay in touch to stay in touch without creating value when you do.  Here are a number of value creating contact reasons that might assist you in staying in touch with other business acquaintances on a regular basis.

1. Request Advice on a project that you are working on (such as writing an article or book)
2. Thank someone for referring business to you
3. Congratulate or promote someone
4. Request the name of a vendor
5. Refer a possible job candidate
6. Thank you for their payment for services rendered
7. Offer free consultation
8. Provide assistance on a professional association project
9. Provide information on a potential customer
10. Call about a new lead or business opportunity that you have become aware of
11. Request coaching on a prospect or lead development idea
12. Forward an article that you think might be of value to the client
13. Recommend a vendor who provides excellent service
14. Invite to a workshop or webinar
15. Forward a blog post to them
16. Notify them when you or your firm posts a press release
17. Notify them regarding trade events
18. Invite them to sporting events or group activities
19. Offer to meet this person over lunch to discuss any of the above
20. Offer to share your contact list with that person to help them develop business
21. Use Social Media such as facebook, linkedin and twitter to stay connected to your network

I was talking today to a sales professional in the real estate industry. We were discussing how different the markets were today than they were 6-18 months ago. In the past, he said that his role was to bring a willing seller together with a willing buyer. In today’s market, he said that he now has to the difficult challenge of bringing a distressed seller, who is generally selling short, together with a buyer who is skeptical and wondering what is wrong with the deal.

As a sales professional, your value might be changing as well. In the past you probably have played the role of a facilitator. Today however, your role might be closer to the role of a mediator than you have ever experienced. Have you considered the difference? Consider that a facilitator is simply someone who makes progress easier. Therefore in the past your role was one of connecting people who were both comfortable and ready to move forward with a deal. In that environment there is little or no friction with both parties trying to get the deal done. Today as a sales mediator, you might need to position yourself differently. Why, because not everyone will be excited about having to carry out the transaction. Here are several thoughts about what mediation is. Even though buyers and sellers aren’t generally in a dispute, consider how these rules could be slightly modified and applied to you in your sales and business development role.

1. The role of the mediator is to reduce obstacles to communication, assist in identifying issues, exploring alternatives, and facilitating voluntary agreements resolving the dispute.
2. The mediator is responsible for assisting you in reaching informed and voluntary decisions while protecting your right of self-determination.
3. The mediator must maintain impartiality throughout mediation. Impartiality means freedom from favoritism or bias in word, action or appearance, and includes a commitment to assist all parties and not any one person.

Applying these rules will allow you to establish trust with any party who is not favorable towards the deal. Trust in every economy is at the heart of every deal. Try this new role out or a variation of them and let me know how they work for you.

As sales people we are taught to focus on the engagements that we have with our clients. There has been a prolific amount of content developed regarding how we are to focus attention on the transaction aspect of selling. Something happened yesterday, however, that gave me a new perspective.

Yesterday I went to eat at one of my usual lunch destinations. When I arrived at the restaurant, I found myself talking to the owner of the establishment. He was behind the counter. We talked about the weather, how his sales were coming, and the special of the day. It was great to connect with the “vendor” of my lunch. It was a Cheers moment: “people want to go where everyone knows their name”. I had a great lunch as usual. I got up after finishing and began to head for the door. As I approached the door, I found myself turning back to the counter to say goodbye to Paul, the business owner. Paul was busy working the counter and helping other customers as they were placing their orders and paying for their lunches. I paused and waited for him to look up. Like most good salespeople he was engaged in the transaction, selling the food. Standing at the door, I was going to give him a simple wave goodbye to acknowledge that lunch was good, and that I would see him again soon. Paul never looked up. I left the restaurant a bit disappointed that I didn’t get a chance to reconnect after the meal. Then I realized that for me, as the customer, the deal business transaction wasn’t completed at the counter but at the door.

It was an Aha! moment for me. I asked myself the question. How many times have I as sales professional thought that a deal was over when my customer still wanted to connect with his vendor. When I think a deal is done might not be the same as when my clients think a deal is done. In the future, I will take an inventory regarding when I mentally check out after a deal to make sure that I am not checking out to early. I need to consider my customers. Are they standing at the door waiting for me to look up so that they can reconnect and say goodbye? To create customers for life, keep your eyes on the door and not just the counter!